Price of Alibaba IPO Remains at Top Range
On Thursday, Alibaba Group Holding presented its initial public offering for $68 per share. It is the highest end of the likely range for the IPO which would raise $21.8 billion. This is keeping in trend with the recent signs of sturdy enthusiasm of the investors for the Chinese e-commerce giant.
At that rate it becomes one of the largest IPO ever and will fetch a market valuation of $167.6 billion for Alibaba. It will outshine the American business icons like Walt Disney Co and Boeing Co. The offering places the e-commerce giant above its U. S. rivals like Amazon and eBay and giving it the financial munitions to increase its presence in markets like the U. S and other countries.
The revenue of Alibaba increased 46 percent in the quarter from April to June mainly depending on the sturdy profits from its mobile business. Its net income attributable to its shareholders almost tripled to $1.99 billion or increased by 84 cents per share.
CEO of e-commerce software provider ChannelAdvisor, Scot Wingo said. "I'd put them (Alibaba) in a class of Facebook and Google with the scale they have, growth prospects and profitability."